What is EPR?
The UK's EPR packaging regulations, planned to be introduced in April 2024, will make 'Producers' responsible for the total lifecycle costs of their packaging, shifting the burden away from local taxpayers and councils as a result. The aim of EPR is to encourage 'Producers' to reduce their use of packaging and utilise materials that are easier to recycle. As such, 'Producers' will pay more for less sustainable packaging, therefore incentivising packaging that uses less material and is easier to recycle. Careful planning will be required in order to prepare for the changes, remain compliant and mitigate packaging waste cost liability. Those affected by EPR must collect the correct packaging data from 1 January 2023, so it is essential to take action now.
Who needs to take action?
According to government guidelines, all UK organisations that handle and supply packaging to consumers and businesses should comply with EPR if all the following are applicable:
- They are an individual business, subsidiary or group (but not a charity)
- They have an annual turnover of £1 million or more
- They have responsibility for more than 25 tonnes of packaging in a calendar year and carry out any of the following packaging activities:
- Supply own-brand packaged goods in the UK
- Package goods for third-party UK organisations
- Import filled packaged products to the UK
- Use ‘transit packaging’ to protect goods during transport so they can be sold to UK consumers
- Own an online marketplace
- Hire or loan out reusable packaging or
- Sell empty packaging
The industry most impacted by the draft EPR legislation will be the consumer goods sector with its vast amounts of packaging responsibility.
How will 'Producers' be impacted by EPR?
The main impact of EPR for packaging will be charges levied on 'Producers' for waste attributed to their packaging. DEFRA expects obligated producer costs to be around £1.7bn each year; £1.2bn of this arising from the cost of managing household waste currently falling on taxpayers. The remainder will relate to administration and reporting costs. As such, there is a clear incentive for 'Producers' to minimise waste from their product value chains in order to mitigate charges. 'Producers' will also be required to provide packaging reports to DEFRA from January 2023 prior to EPR implementation in April 2024.
The data required includes the specifications, i.e. material, weight, and composition for all types of packaging, including primary, secondary and tertiary. Sales data must also be reported, as well as information on whether the packaging is likely to end up as household waste. This will require close collaboration with supply chains to understand packaging products and provide the necessary reporting on an ongoing basis.
Key preparation requirements for 'Producers'
- Understand the applicability of EPR – whether you fall within the scope of the definition of 'Producer’ and whether you qualify as a small or large organisation under the draft legislation
- Work with your supply chain to clarify specifications for all packaging requirements, establish reporting processes and validate green claims
- Undertake downstream logistics mapping to understand the potential contribution to household waste
- Optimise packaging specification across all types to minimise waste from the value chain and thus reduce charges under EPR
Why is the UK government introducing EPR?
In support of ambitious goals to protect our climate, drive green growth and decrease unnecessary waste, the UK Government has committed to implementing new EPR legislation. It represents a significant update and changes to the current Producer Responsibility Obligations (Packing Waste) Regulations 1997 piece of legislation.
Critics believe that new EPR legislation is essential to delivering on the government's environmental goals, but doesn't go far enough to address packaging waste and pollution. They argue that although EPR should secure sufficient and dedicated funding to cover the cost of managing packaging waste and maximise recycling, it will not be enough to create a circular economy in which packaging never becomes waste.
There are calls for a broader policy strategy to scale the circular economy in partnership with industry. Such a strategy would need to include initiatives to stimulate design for a circular economy, for example by creating standards to harmonise packaging designs and to preserve resource value by means such as Deposit Return Schemes. It is argued that EPR must be grown in order to achieve overarching sustainability goals.
Expert support
Our expert team at 4C Associates can help 'Producers' to navigate the new EPR legislation and optimise packaging to mitigate costs and achieve sustainability targets. 4C Associates combine extensive knowledge and experience with the latest process and technology innovations to deliver transformative solutions and sustainable commercial outcomes for our clients.
Contact us today to arrange a free, no-obligation consultation by visiting our website here and filling out our contact form or call us at +44 (0)20 7605